Kembara Bijak Wang 2020 – Closing and Prize Giving Ceremony

KEYNOTE ADDRESS BY

YB SENATOR TENGKU DATUK SRI UTAMA ZAFRUL

TENGKU ABDUL AZIZ
Minister of Finance Malaysia

Kembara Bijak Wang 2020
Closing and Prize Giving Ceremony

Tuesday, 9 March 2021

SALUTATIONS

1. Yang Berusaha Encik Azaddin Ngah Tasir
Chief Executive Officer Agensi Kaunseling dan Pengurusan Kredit (AKPK)

2. Yang Berusaha Mr Lim Eng Siong
Deputy Chief Executive Officer HSBC Bank Malaysia Berhad

3. Yang Berusaha Prof. Dr Noor Hazlina Ahmad,
Dean, School of Management Universiti Sains Malaysia (USM)

Ladies & Gentlemen and Honoured Guests,

1. I am grateful to Allah SWT for the opportunity to meet today virtually for the Kembara Bijak Wang 2020 Closing and Prize Giving Ceremony.

2. Foremost, allow me to extent my thanks to Agensi Kaunseling dan Pengurusan Kredit (AKPK), HSBC Malaysia and University SainsMalaysia (USM) without which this effort would not have been a success.

3. Truly, Kembara Bijak Wang 2020 is a commendable effort targeted at our youths. Over the course of 4 months, I am confident that you have gained valuable lessons in financial literacy and had plenty of fun along the way. As you have helped “Moolah”, the stranded alien, I hope you will apply the 4 principles of – Manage, Save, Earn and Give – for good financial management in your daily lives.

4. On that note, please allow me to share some personal throughs and experiences on these principles.

5. [Manage] When I was in ‘asrama’ and university, my parents were rather strict when it came to money. Often, they gave just enough to cover the basics. And so, from a young age, I learned to budget and live within my means. If I wanted a new shirt or bicycle, I had to manage my expenses so I could save for it. The act of managing my expenses also taught me another valuable skill: delayed gratification. In an age of credit cards and online shopping, I understand how difficult that may be. According to Bank Negara Malaysia, 47 per cent of our youth have high credit card debt. 40 per cent of millennials also admitted to spending more than they can afford. So, as best as you can, think through on what is necessary and prioritise purchases, be it a new outfit or PS5 you wanted, and you will find that every ringgit goes a longer way.

6. [Save] Warren Buffett famously said, “Do not save what is left after spending, but spend what is left after saving”. In other words, pay yourself first and use to power of compounding to your advantage. To give a bit of perspective on the power of compounding: if a twenty year old wanted to have one million ringgit in savings by the time he or she turns 60, assuming an annual return of 6 per cent, he or she would only need to save about 500 ringgit monthly. So start saving today when you are young and you can be a millionaire. Related to Save, I wish to share with you some stats from EPF. Fifty per cent of EPF members have less than two hundred thousand ringgit in their EPF Accounts. This is lower than the average of RM240,000 of basic savings members should have upon reaching age 55. Related to this, 50% of contributors exhaust their EPF savings within 5 years.

7. [Earn] This brings us to the 3rd point, which is Earn. With the emergence of the gig economy such as Grab, Foodpanda and Shopee, we have many opportunities and options to earn alternative sources of income to enhance our savings. In that respect, I am very pleased to see many Malaysians taking up the challenge of starting their own business.

8. [Give] The Prophet Muhammad, peace be upon him, once said to “give charity without delay for it stands in the way of calamity”. I am a big believer in that and try to give when I am able. And often, I find that the kindness is returned in many other ways be it good health or safety. And so, give when you can especially to the needy, and insya Allah, you will find that the kindness being returned to you in numerous ways.

9.Beyond these lessons and perspectives, I hope you will continue to build on your financial literacy skills, be it growing your wealth through investing or protecting your wealth through insurance or takaful.

10. In this respect, I would like to commend AKPK for acting as a one stop centre to empower households and SMEs, through financial education, advisory and debt management services. Since 2006, AKPK has reached out to about 6.8 million individuals via its financial education initiatives. Its mandate was broadened to include SMEs since September last year. AKPK’s role has become even more important in the last one year. In 2020 alone, AKPK has helped 33,356 individuals to restructure their debts and place them on a stronger footing, giving them clarity and direction in laying out their financial plans. As for SMEs, from September 2020 to February 2021, 161 applications were approved for debt services development with loan amounts totalling RM151.8 million.

11. Once again, congratulations to AKPK for supporting individuals and SMEs get back on their feet.

Ladies & Gentlemen,

12. I am especially proud and happy for the 5,634 students from 20 institutions of higher learning and 22 UiTM branch campuses nationwide who have joined Kembara Bijak Wang.

13. 50 groups comprising of 250 students have qualified for the grand final, the Virtual Treasure Hunt and today we will find out who the winners are. While not everybody will get to bring back the grand prize, you have already received the greatest gift of all – knowledge.

14. You have all learned how to manage and save your money. You have learned about investing. And best of all, you have learned about the joy of giving and helping others, creating stronger communities and building a better society for everyone. It is my hope that you will apply these principles of good financial management in your daily lives.

Ladies & Gentlemen,

15. I hope this event will become a regular feature, and this second KBW shows promising potential with 1,634 more undergraduates participating, compared to the 4,000 who joined in 2019.

16. Through events like this, the vision to improve the financial wellbeing of Malaysians will become a reality in line with the Malaysian National Strategy for Financial Literacy.

17. We must remember that raising the level of financial literacy is a long-term commitment that requires the sustained efforts and support of many parties. Improving the financial well-being of all Malaysians, including the youth, is an important priority for the country to realise its full potential.

18. Again, I would like to congratulate the co-organisers of KBW2020 – AKPK, HSBC and University Sains Malaysia for coming together for our youths to help them develop financial wisdom so they can live their best lives, Insya Allah.

19. Thank you.

YB Senator Tengku Datuk Seri Utama Zafrul bin Tengku Abdul Aziz
Finance Minister
Ministry of Finance
9 March 2021